Burial Insurance: Affordable Final Expense Coverage for Seniors

What Is Burial Insurance?

Burial insurance (also called final expense insurance) is a small whole life insurance policy designed to cover funeral costs and end-of-life expenses. It ensures your family is not burdened with thousands of dollars in expenses during their most difficult time.

Key features:

• Coverage amounts: $5,000-$50,000 (most common: $10,000-$25,000)
• Permanent coverage: Lasts your entire life, never expires
• Fixed premiums: Rate never increases
• Simplified underwriting: Easier to qualify than large life insurance policies
• Cash value: Builds over time like any whole life policy
• Quick payout: Beneficiaries typically receive funds within days

Burial insurance is specifically designed for seniors and people who need small, permanent coverage. It is the most popular type of life insurance purchased by people over 60.

How Much Does Burial Insurance Cost?

Simplified Issue (Health Questions, No Exam):

Age	$10,000	$15,000	$20,000	$25,000
50	$28/mo	$38/mo	$48/mo	$58/mo
55	$35/mo	$48/mo	$60/mo	$72/mo
60	$42/mo	$58/mo	$75/mo	$90/mo
65	$55/mo	$78/mo	$98/mo	$120/mo
70	$72/mo	$102/mo	$130/mo	$160/mo
75	$92/mo	$132/mo	$168/mo	$205/mo

Guaranteed Issue (No Questions, Everyone Accepted):

Age	$10,000	$15,000	$25,000
55	$48/mo	$68/mo	$105/mo
60	$55/mo	$78/mo	$125/mo
65	$68/mo	$98/mo	$155/mo
70	$85/mo	$122/mo	$195/mo

Rates are estimates for male, non-smoker. Female rates are typically 15-20% lower.

Guaranteed issue costs more because the carrier accepts everyone — including people with serious health conditions.

How Much Coverage Do You Need?

Here is what end-of-life expenses typically include:

Expense	Average Cost
Funeral service (traditional with burial)	$7,800-$12,000
Cremation service	$4,000-$7,000
Headstone/marker	$1,000-$3,000
Cemetery plot and opening/closing	$1,000-$4,000
Flowers, obituary, reception	$1,000-$3,000
Outstanding medical bills	$2,000-$10,000+
Credit card debt	Variable
Legal and probate costs	$1,500-$5,000

Recommended coverage levels:

• $10,000-$15,000: Covers basic cremation and small expenses
• $15,000-$20,000: Covers modest funeral with some cushion
• $20,000-$25,000: Covers traditional funeral and outstanding bills
• $25,000-$50,000: Full coverage including debts and legacy gift

Most families find $15,000-$25,000 provides adequate coverage for final expenses.

Best Burial Insurance Companies

Best Simplified Issue (Health Questions, No Exam):

• Mutual of Omaha — top-rated carrier, competitive rates, wide acceptance
• AIG (American General) — strong for applicants with health conditions
• Globe Life — easy application, wide acceptance
• Colonial Penn — guaranteed acceptance with graded benefits
• AARP/New York Life — trusted name, good for ages 50-85

Best Guaranteed Issue (No Questions):

• Mutual of Omaha — up to $25K, well-regarded
• AIG — guaranteed acceptance, reasonable rates
• Gerber Life — guaranteed issue up to $25K
• Colonial Penn — $9.95/unit guaranteed acceptance

What to look for in a carrier:

• AM Best rating of A or above
• No premium increases over time
• Fast claim processing (within 48 hours)
• No graded benefit period (simplified issue) or short graded period (guaranteed issue)

How to Buy Burial Insurance

Step 1: Determine your coverage amount. Estimate funeral costs plus any outstanding debts or bills you want covered. $15K-$25K covers most situations.

Step 2: Choose simplified or guaranteed issue.

• If you can answer “no” to most health questions (no recent hospitalizations, no organ transplant, not on dialysis) → simplified issue (better rates)
• If you have serious health conditions or have been declined before → guaranteed issue (everyone accepted)

Step 3: Compare carriers. Rates vary significantly. A $20K policy from one carrier may cost $15-20/month more than the same coverage from another.

Step 4: Understand the graded benefit. Guaranteed issue policies have a graded death benefit — if you die within the first 2-3 years, your family receives a return of premiums paid (plus 10% interest) rather than the full death benefit. After the waiting period, the full benefit applies.

Step 5: Apply. Most burial insurance applications can be completed by phone or online in 15-30 minutes. No medical exam is required.

Step 6: Name your beneficiary. Choose someone you trust to handle your final expenses. The death benefit goes directly to them, not to a funeral home.

Important: Avoid “preneed” funeral insurance sold directly by funeral homes. These policies lock you into one funeral home and often cost more than an independent burial insurance policy.

Ready to find coverage? Get a free life insurance quote and compare burial insurance rates from top carriers.

Frequently Asked Questions

What is the difference between burial insurance and life insurance?

Burial insurance is a type of whole life insurance with a smaller face value ($5K-$50K) designed specifically to cover end-of-life expenses. It has simplified underwriting, making it easier to qualify for, especially for seniors with health conditions.

How much does a funeral cost?

The average funeral in the US costs $7,800-$12,000 for a traditional service with burial. Cremation averages $4,000-$7,000. Adding a headstone, flowers, and reception pushes costs higher. A $15,000-$25,000 burial insurance policy covers most scenarios.

Can I get burial insurance with health problems?

Yes. That is one of burial insurance's biggest advantages. Simplified issue plans accept most applicants with health conditions. Guaranteed issue plans accept everyone, regardless of health — no questions asked and no medical exam.